There is growing concern that the government’s shared equity scheme could have serious implications for the economy if there were to be a housing downturn.Chancellor Gordon Brown revealed in his pre-Budget statement last week that three lenders had signed up to the government’s shared equity scheme to help first-time buyers get on the property ladder. Under the scheme, the buyer would take out a standard mortgage for a portion of the property – a figure of 75% was suggested – with the mortgage lender and the government providing an equity loan of 25% (12.5% each) for the remainder of the purchase price. But critics argue the government has failed to do enough to make the scheme a viable commercial proposition for lenders. When the scheme was first aired in the 2005 Budget, Abbey, Alliance & Leicester, Yorkshire, Halifax and Nationwide began talks, but Abbey and A&L quickly dropped out. The government hopes to help some 40,000 people over five years through the initiative. This effectively means the government becomes a property investor, exposing itself to the possibility of negative equity. The government has also agreed to be the last party to receive compensation if there was a housing downturn.
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Credit reference agency Callcredit has teamed up with the Home Office in an initiative to combat the growing problem of identity theft. The agency is to distribute Home Office leaflets to consumers throughout the country advising them on how to avoid becoming victims of identity theft and what action to take if they do fall […]
Intermediaries are to get a helping hand in the intricate world of Home Information Packs thanks to eConveyancer’s Alan Dring and Mortgage Strategy. Dring, sales director at eConveyancer, will be writing a weekly article on the development of HIPs in the magazine and readers will be invited to forward their queries and observations to him […]
It was an act of gross incompetence. A move that defied belief. We are of course talking about chancellor Gordon Brown’s amazing U-turn on placing residential property in self-invested personal pensions.
From Arthur Hamilton Like many other brokers, we were promised great things with the launch of Future’s product range. The products looked excellent, but would its notoriously shaky administration be up to the task? Some months on, the reality of this lender’s incompetence is clear. What is the point of having a great range of […]
Pension specialist Fiona Tait gives an update on three big announcements from the 2016 Budget – Pensions Advice Allowance (PAA), the Lifetime ISA (LISA) and the pension dashboard. £500 Pensions Advice Allowance What’s new Under current rules it is possible to deduct an adviser charge from a defined contribution pension fund to pay for financial […]
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